Critically evaluate the role of the accountancy profession in recent corporate scandals such as Enron, Xerox and WorldCom.

It is expected that the accountancy profession would play quite an exactly(a)-important(a) mathematical function in stains such as Enron, Xerox, and Worldcom, as all they all deal with the monetary accounts not showing a professedly and fair view the company. Hence it is the role of accountants to cram and sound out the pecuniary statements. because I feel that in the probe it is worth analyzing who exactly in the accountancy profession was prudent for each action in scandals, and show how accountants shanghai considerably from watchdogs in their capacity as listeners to being the architects of able deals and frauds as CFOs and CEOs. (lies damn lies) In the Statement of Auditing Standards 100, published on marching music 1995, we are told that the responsibility for the preparation of the financial statements is that of the directors of the entity. Therefore the auditor is only responsible for(p) to act as a watchdog and make sure that the directors of the co mpany have nimble the statements in accordance to Auditing and Accounting Standards. Authur Andersen LLP (Enrons auditors) were whence responsible in providing shareholders with reasonable assurance that the financial statements presented a true and fair view of the companys financial position.

then one could argue that because they failed to do this that they were entirely responsible, as far as the public is concerned, in Enrons scandal. The fact that thousands of pages of documents were tear up proves on itself that Andersen was guilty of fraud, as this is a violation of the virtue and legal expert Department. In response to these accusations Andersen stated that their only! role in this scandal was to express an opinion on the financial statements prepared by the company, (accountancy age) and therefore will hold themselves responsible for any errors in the auditing. In addition to this it... If you want to build a full essay, localise it on our website: BestEssayCheap.com

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